Bondlady’s Corner

Iraqi News Highlights Monday Afternoon 1-2-23

Tlm724 Administrator Bondlady’s Corner

Parliamentary Expectations Of The Arrival Of The Federal Budget To Parliament Next Week

Monday 02 January 2023 16:36 | political Number of readings: 161   Baghdad / NINA / Representatives from different blocs expected the arrival of the federal budget law with the beginning of the legislative term on the ninth of this month./

Central Bank: We Need The Cooperation Of The Ministries Of Commerce And Finance To Control The Price Of The Dollar

Money and business  Economy News-Baghdad   A member of the Board of Directors of the Central Bank, Majed Al-Suri, called, on Monday, for government measures to be taken to support the bank’s measures in the face of the rise in the exchange rate.

Al-Suri told “Al-Iqtisad News” that “the central bank moved through monetary policy tools to control the price hike by facilitating access to the dollar and allowing cash sales to travelers, whether for tourism, study or treatment, through the electronic card, at a value of 10 thousand dollars.”

He explained that “the monetary measures of the Central Bank will not be integrated or achieve their fruits without being matched by financial measures by the government, which is to control borders and taxes and check import licenses.”

Al-Suri, a representative of the private sector in the Central Bank, pointed out that “the government’s financial policy must be carried out by the Ministry of Finance by controlling borders and taxes, and by the Ministry of Commerce by checking import licenses.”

He pointed out that without communication between these agencies and focusing spending on economic development, the measures of the Central Bank alone are not sufficient in addressing the issue of the exchange rate.  Views 218  Added 01/02/2023 – 12:40 PM  Updated 01/02/2023 – 6:08 PM

Al-Sudani: The Fluctuations In The Exchange Rate Made Us Adhere To The Inevitability Of Economic Reform

political| 02:18 – 02/01/2023   Baghdad – Mawazine News, Prime Minister Muhammad Shia Al-Sudani, today, Monday, made an inspection visit to the Ministry of Industry and Minerals.

Al-Sudani was briefed, according to a statement by his office, on “the progress of work in the ministry’s factories and companies, and he also chaired a meeting of the advanced staff, and listened to a briefing by the Minister of Industry about the ministry’s investment plan for development, its vision towards supporting strategic industries, and the obstacles facing upgrading the industrial reality in Iraq, as well as Learn about lagging projects and ways to address them.

Al-Sudani stressed that “his visit to the ministry at the beginning of the new year reflects the government’s keenness to implement its ministerial curriculum that focuses on services and the economy,” noting that “economic reform is an introduction to social reform, and it is not an intellectual luxury or media consumption.”

He added, “The exchange rate fluctuations and their impact on the Iraqi economy made us adhere to the inevitability of economic reform, support for agriculture, industry, tourism and trade, instead of Iraq being a market for imported goods and a passage for smuggling hard currency and money laundering,” noting that “Iraq has an opportunity to rise as an industrial country.” , with an industrial identity, and that the government is supportive of the industrial sector in this path.

And he stressed the need for “the industry to be far from political investment, and for partnership with the private sector to contribute to the advancement of the Iraqi industry.” He also directed “to work to protect the local product as a means to support the private sector, and to reduce dumping of the local market with imported goods.”

The Prime Minister also directed, to “audit industrial development licenses, and sponsor small and medium enterprises, as they establish major projects, and contribute to providing job opportunities.” Ended 29/N33

Financial Advisor: 93% Of The Demand For Dollars Goes Abroad

Money and business  Economy News-Baghdad   The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed, on Monday, that 93% of the demand for the dollar goes to foreign transfers, stressing that the new central bank measures imposed discipline on the currency market.

Saleh told “Al-Iqtisad News” that “what is happening in terms of the rise and slight fluctuation in the exchange rate in favor of the dollar in the parallel market is not caused by a problem with the adequacy of foreign reserves, as it is a force to intervene in the exchange market and provide sufficient supply to meet the demand for foreign exchange (as everyone knows The net reserves of the Central Bank of Iraq in foreign currency, which amounted to nearly $100 billion with government reserves, which is the highest in Iraq’s financial history), especially in reaching levels of adequacy, as those foreign reserves cover the value of the national currency issued into circulation by about (one and a half times) as These reserves cover about 20 months of importation, while the international standard does not exceed 3-6 as a maximum.

He explained, “What happened in terms of a slight decrease in the external value of the dinar or the exchange rate, as it represents a temporary phenomenon dictated by regulatory conditions in the procedures for conducting external transfer requests (submitted by local banks) on foreign currency, as work was done a while ago (on an advanced electronic platform).

It links the request for transfers by local banks with correspondents from international banks and the relevant global compliance bodies at the same time, due to the fact that oil revenues are in dollars at the Federal Reserve Bank as a result of a previous UN Security Council Resolution No. 1483 in May 2003.

And he continued, “During the start of experimentation with the platform for checking external transfer requests a few weeks ago (and at the stage of submitting requests for foreign currency by private banks to the window for selling foreign currency at the Iraqi Central Bank in order to transfer it to their correspondents around the world) it became clear that there are shortcomings and information deficiencies that are not consistent with governance Transfers flowed through the global banking system, which returned some of them again or were rejected to complete the standard submission requirements again and follow the standard bases in disclosing the final beneficiary and other terms of bank disclosure and compliance.

He pointed out that “the new procedures have imposed discipline on the supply of foreign currency temporarily, requiring an adjustment period in order for private banks to practice global compliance rules in transferring for the benefit of beneficiaries from foreign trade financing operations to the private sector.”

And he pointed out that “the problem is rooted in regulating the supply of foreign currency and not in the availability of foreign currency, which is, as we mentioned, in an abundant and more efficient manner, since the surplus rate in the hot account of the balance of payments touched positive 15% to the gross domestic product, which is a high indicator of external economic stability.”

Thus, it takes some time to reorganize the requests and their consistency with the global requirements for transfer through the digital platform, which has come to represent the new tool in dealing with the window of the Central Bank of Iraq for buying and selling foreign currency.

The financial advisor confirmed that “the sales of the Central Bank of Iraq’s window still meet the demand for foreign currency in full, including the cash dollar for the purposes of travel and tourism, but the demand of private banks remains mostly on behalf of the bank’s customers from merchants and others, which focuses on external transfers of dollars, which represents a demand for commodities.”

And foreign services and benefits, as the percentage of requests for external transfer in dollars to foreign banks amounts to 93% of the total demand for foreign exchange from the window of the Central Bank and transferred to correspondent banks to pay import bills or what is called foreign trade financing for the private sector, trade finance.The problem is very temporary and applied.

Purely technical in the transfer procedures via the digital platform and not in the conduct of the country’s monetary policy at all.  Views 206  Added 01/02/2023 – 1:28 PM  Updated 01/02/2023 – 6:25 PM

More Than 48 Billion Dollars… Central Bank Of Iraq Auction Sales In 2022

Monday, January 2, 2023 9:40 am  Follow-up / National News Center

The Central Bank’s sales in the hard currency auction of the US dollar during 2022 amounted to more than $48 billion.

And the Central Bank sold during the 12 months of last year 2022 in the days when it opened its auction for buying and selling US dollars 48 billion and 509 million and 271 thousand dollars, at a rate of 4 billion and 42 million and 439 thousand dollars per month.

The highest sales were in June, amounting to 5,300,417,000, while the lowest sales were in December, at 2,409,116,000 dollars.

These sales were distributed between remittances abroad to finance foreign trade, and cash sales to banks, while the sale price of dollars transferred to bank accounts abroad, in addition to cash sales, amounted to 1460 Iraqi dinars per dollar.


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